It can be very tasking for start-ups or existing textile manufacturers to get their hands on substantial capital for their business.
Fortunately, the Government has decided to make efforts to relieve these entrepreneurs.
The CBN Non-Interest Intervention Fund for the Textile Sector is a loan program that provides funding for textile manufacturers and textile-related businesses in Nigeria.
The program is part of the policy response of the Central Bank of Nigeria (CBN) to the challenges facing the textile sector in Nigeria, which aims to revitalize the textile industry and create more jobs and income for Nigerians.
The program offers loans for various textile activities, such as cotton ginning, spinning, weaving, knitting, dyeing, printing, and finishing.
Read on to learn how to apply:
Features of the Program Loans
The program loans have the following features:
- The loan amount is up to N2 billion per beneficiary, with no collateral required.
- The loan is interest-free, with a service charge of 4.5% per annum, payable on a quarterly basis.
- The loan has a moratorium of up to 3 years and a tenor of up to 10 years, depending on the type and nature of the textile activity.
- The loan can be used for various purposes, such as equipment purchase, working capital, expansion, and modernization.
Eligibility Criteria for the Program Loans
To be eligible for the program loans, you must meet the following criteria:
- You must be a Nigerian citizen or a registered business entity in Nigeria.
- You must have a viable business idea or an existing business in the textile sector or related sectors, such as garment, fashion, and accessories.
- You must have a bank verification number (BVN) and a valid identification.
- You must have a business plan and a cash flow projection.
- You must have a good credit history and a satisfactory guarantor.
Application Process for the Program Loans
- To apply for the program loans, you need to follow these steps:
- Visit the BOI website and fill out the online application form.
- Provide documents such as your business registration certificate, tax clearance certificate, bank statement, and guarantor’s details.
- Submit your application and wait for the verification and approval process.
- Receive your loan disbursement through your bank account.
Read on full article on: 10 Government Loans Available This Month
Benefits of the Program Loans
The program loans offer several benefits to textile manufacturers and textile-related businesses in Nigeria, such as:
1. Funding
The program loans provide textile manufacturers and textile-related businesses with the funds they need to revive, upgrade, or expand their textile production or services.
The program loans have flexible terms and conditions, such as no interest, no collateral, and long repayment periods, that make them affordable and accessible to textile manufacturers and textile-related businesses.
2. Quality
The program loans also ensure the quality and competitiveness of the textile products and services by requiring adherence to all the standards and specifications of the National Textile Policy.
3. Development
The program loans also contribute to developing the textile sector and the economy of Nigeria.
The program loans help textile manufacturers and textile-related businesses to produce and supply more textile products and services for the local and international markets.
Conclusion
Introducing the CBN Non-Interest Intervention Fund for the Textile Sector is a new era of revitalization and growth for Nigeria’s textile industry.
As this fund becomes available this month, it presents a timely opportunity for stakeholders to rejuvenate and expand their operations.
With a focus on fostering innovation and sustainability, this intervention promises to transform the textile sector, create jobs, and drive economic development.
Send in your applications while it’s still open.
Good luck!
